HomeMy WebLinkAboutOrdinance 18039-04-2008Ordinance No. 18039 -04 -2008
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL DEBT
SERVICE FUND IN THE AMOUNT OF $253,000 FOR THE PURPOSE OF
AUTHORIZING PAYMENT OF ARBITRAGE REBATE TO THE U.S. TREASURY
FOR GENERAL PURPOSE REFUNDING BONDS, SERIES 2002 -A; PROVIDING
FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2007-
2008 in the Budget of the City Manager, there shall also be increased appropriations in the General
Debt Service Fund in the amount of $253,000 for the purpose authorizing payment of Arbitrage
Rebate to the U.S. Treasury for General Purpose Refunding Bonds, Series 2002 -A.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections, or parts of sections of this
ordinance, which said remaining provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 17749 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance
are in direct conflict with such other ordinances and appropriations, in which instance said
conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED-A,S, TO FORM AND LEGALITY:
LAa��W�
Assistant (:%ty Attorney
ADOPTED AND EFFECTIVE: April 1, 2008
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COUNCIL ACTION: Approved on 4/1/2008 - Ord. No. # 18039-04-2008
DATE: Tuesday, April 01, 2008
LOG NAME: 13ARBITRAGE REB
REFERENCE NO.: G-16094
SUBJECT:
Authorize Payment of Arbitrage Rebate for General Purpose Refunding Bonds, Series 2002-A, and
Adopt Supplemental Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize payment not to exceed $253,000 to the United States Treasury for arbitrage rebate; and
2. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the General Debt Service Fund.
DISCUSSION:
The payment relates to the arbitrage rebate liability for the City's $38,580,000 General Purpose Refunding
Bonds, Series 2002-A. Over the past several years the General Debt Service Fund became over funded.
On August 14, 2007, Council approved (M&C G-15827) use of the excess funding for defeasance of various
debt issues totaling $48,000,000.
Because of its size, a portion of the General Debt Service Fund must be included in the Series 2002-A
calculation. The General Debt Service Fund was earning at a rate of approximately 4 percent over the past
several years and the Series 2002-A bond yield is 2.43 percent. Under Internal Revenue Service (IRS)
rules, any investment earnings above the bond yield must be remitted to the IRS as a rebate payment. In
the case of the Series 2002-A issue, the excess earnings above the bond yield is approximately $253,000
and this excess must be remitted to the IRS.
FISCAL INFORMATION /CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of
the General Debt Service Fund. Upon approval, the projected reserved Fund Balance of the General Debt
Service Fund will be $8,173,694.
TO Fund/Account/Centers FROM Fund/Account/Centers
GD06 539650 0132000 $253,000.00 QQ06 539650 0132000 $253,000.00
Submitted for City Manager's Office b
y-
Originating Department Head:
Additional Information Contact:
I ilia a]
Karen Montgomery (6222)
Lena Ellis (8517)
Mae Gray-Rossi (8325)
(8337)
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